{ "key_pair_value_system": true, "answer_rating_count": "", "question_feedback_html": { "html_star": "", "html_star_feedback": "" }, "answer_average_rating_value": "", "answer_date_js": "2024-06-06T10:18:06-04:00", "answer_date": "2024-06-06 10:18:06", "is_docs_available": "", "is_excel_available": "", "is_pdf_available": "", "count_file_available": 0, "main_page": "student_question_view", "question_id": "2358601", "url": "\/study-help\/questions\/a-500-mw-power-plant-has-a-total-installed-cost-2358601", "question_creation_date_js": "2024-06-06T10:18:06-04:00", "question_creation_date": "Jun 06, 2024 10:18 AM", "meta_title": "[Solved] A 500 MW power plant has a total installe | SolutionInn", "meta_description": "Answer of - A 500 MW power plant has a total installed cost of $5 billion. It produces 4 million MWh of electric energy per year w | SolutionInn", "meta_keywords": "500,mw,power,plant,total,installed,cost,$5,billion,produces,4,million", "question_title_h1": "A 500 MW power plant has a total installed cost of $5 billion. It produces 4 million MWh of electric energy per year with a", "question_title": "A 500 MW power plant has a total installed cost of $5", "question_title_for_js_snippet": "A 500 MW power plant has a total installed cost of $5 billion It produces 4 million MWh of electric energy per year with a marginal cost of $25 per MWh It faces an enervymarketprice of $35 per MWh for the entire life of the plant Assume that the life of the plant is 20 years and the annual discount rate is 10 If the only service that the plant provides is to the energy market, will the plant be profitable If not, calculate the capacity payment (in units of $ per MW per year) that the plant would need to break even (Hint Calculate the ARR for the power plant, and calculate whether the plant's energy payments each year would meet the ARR )", "question_description": "

A 500 MW power plant has a total installed cost of $5 billion. It produces 4 million MWh of electric energy per year with a marginal cost of $25 per MWh. It faces an enervymarketprice of $35 per MWh for the entire life of the plant. Assume that the life of the plant is 20 years and the annual discount rate is 10%. If the only service that the plant provides is to the energy market, will the plant be profitable? If not, calculate the capacity payment (in units of $ per MW per year) that the plant would need to break even.(Hint: Calculate the ARR for the power plant, and calculate whether the plant's energy payments each year would meet the ARR.)<\/strong><\/p>", "transcribed_text": "", "related_book": { "title": "Study Guide To Accompany Fundamentals Of Corporate Finance", "isbn": "0073012424, 9780073012421", "edition": "5th Edition", "authors": "Richard Brealey, Stewart Myers, Alan Marcus", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/2023\/11\/65535751ecd4d_65765535751d7d34.jpg", "uri": "\/textbooks\/study-guide-to-accompany-fundamentals-of-corporate-finance-5th-edition-9780073012421-95068", "see_more_uri": "" }, "free_related_book": { "isbn": "979-8398914269", "uri": "\/textbooks\/the-big-bang-the-amazing-story-of-how-science-unveils-the-secrets-of-the-universe-1st-edition-979-8398914269-339080", "name": "The Big Bang The Amazing Story Of How Science Unveils The Secrets Of The Universe", "edition": "1st Edition" }, "question_posted": "2024-06-06 10:18:06", "see_more_questions_link": "\/study-help\/questions\/business-banking-2021-September-12", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/what-are-some-reasons-that-capital-asset-acquisition-decisions-receive", "description": "What are some reasons that capital asset acquisition decisions receive particular attention?", "stars": 3 }, { "url": "\/study-help\/principles-corporate-finance\/what-is-the-present-value-at-10-of-a-perpetual-1467635", "description": "What is the present value at 10% of a perpetual income of 100? And a perpetual income of 100 rising by 3% every year from the following year?", "stars": 3 }, { "url": "\/study-help\/psychology\/if-a-predictive-relationship-was-studied-was-the-predictor-variable-1979869", "description": "If a predictive relationship was studied, was the predictor variable the only criterion used to select participants in the study? Would combining the predictor variable with other screening criteria...", "stars": 3 }, { "url": "\/alice-johnson-social-security-number-222233334-is-single-taxpayer-and", "description": "Alice Johnson, Social Security number 222-23-3334, is single taxpayer and is employed as a secretary by State University of Florida. She has the following items pertaining to her income tax return...", "stars": 3.5 }, { "url": "\/study-help\/questions\/which-of-the-following-is-the-property-because-of-which-9903372", "description": "Which of the following is the property because of which a material can be drawn into wires? a) Ductility b) Elasticity c) Malleability d) Strength", "stars": 3.5 }, { "url": "\/study-help\/questions\/scenario-analysis-shao-industries-is-considering-a-proposed-project-for-7406052", "description": "Scenario Analysis Shao Industries is considering a proposed project for its capital budget. The company estimates the project's NPV is $12 million. This estimate assumes that the economy and market...", "stars": 3.5 }, { "url": "\/study-help\/questions\/describe-the-significance-of-the-following-inputs-activities-and-outputs-999846", "description": "Describe the significance of the following inputs, activities, and outputs to the Architecture Definition Process. Refer to the reading material to provide an educated response. Quote or cite sources...", "stars": 3.5 }, { "url": "\/study-help\/questions\/identify-the-central-norms-and-values-you-feel-characterize-the-1004578", "description": "Identify the central norms and values you feel characterize the culture in the organization. These factors should be the core values or beliefs that in the experience characterize the way the culture...", "stars": 3.5 }, { "url": "\/study-help\/questions\/criticize-two-business-ideas-from-the-shark-tank-program-with-1005428", "description": "Criticize two business ideas from the Shark Tank program, with detailson each strength and weakness and the element or elementsthat result in the presentation's success or failure, in your opinion....", "stars": 3.5 }, { "url": "\/study-help\/questions\/the-business-school-faculty-has-become-increasingly-concerned-about-the-1004632", "description": "The business school faculty has become increasingly concerned about the ethics associated with modern business practice. The general reputation of business executives is in the tank. They are seen as...", "stars": 3.5 }, { "url": "\/study-help\/questions\/what-specific-skills-set-experiences-and-expertise-in-bpm-crm-1004743", "description": "What specific skills set, experiences and expertise in BPM, CRM and the 7FE Framework can you currently utilize to be successful in your future professional development?", "stars": 3.5 }, { "url": "\/study-help\/questions\/overriding-methods-is-common-in-objectoriented-programming-then-why-should-7033736", "description": "Overriding methods is common in object-oriented programming. Then, why should a programmer avoid overriding variables?", "stars": 3.5 }, { "url": "\/study-help\/moral-issues-in-business\/do-you-agree-that-loyal-employees-have-more-motivation-that-1553088", "description": "Do you agree that loyal employees have more motivation? That llley are more trustworthy? What about the idea that a persoo who is loyal at wOlt \n \n \n \n Answered: 1 week ago", "stars": 3 }, { "url": "\/study-help\/moral-issues-in-business\/is-loyalty-intrinsically-valuable-how-important-a-value-is-loyalty-1553086", "description": "Is loyalty intrinsically valuable? How important a value is loyalty? Who or what are you loyal to? How does loyalty to ones employer compare to other kinds of loyalty?", "stars": 3 }, { "url": "\/study-help\/moral-issues-in-business\/when-if-ever-would-it-be-apjfopriate-to-be-loyal-1553084", "description": "When, if ever, would It be ap(Jfopriate to be loyal to a large, publicly traded corporation? What are the risks of being a loyal employee?", "stars": 3 } ], "next_back_navigation": { "previous": "\/study-help\/questions\/hello-im-having-trouble-figuring-this-out-can-you-help-2358600", "next": "\/study-help\/questions\/assume-that-nash-inc-has-a-capital-budget-of-203000-2358602" }, "breadcrumbs": [ { "name": "Study help", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers" }, { "name": "Business", "link": "https:\/\/www.solutioninn.com\/study-help\/questions-and-answers\/business" }, { "name": "Finance", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/business-finance" }, { "name": "A 500 MW power plant has a total installed cost of $5", "link": "https:\/\/www.solutioninn.com\/study-help\/questions\/a-500-mw-power-plant-has-a-total-installed-cost-2358601" } ], "skill_details": { "skill_id": "13", "skill_name": "Finance", "parent_id": "1" } } } }